Buyers and Sellers Attitudes

Here is Michigan we have been in the midst of a Buyers Market since 2001. Every year the inventory increased until know we have 8000 single family homes and condo's to sell.
At first the sellers would not accept the market was changing and it was hard...........they still wanted the price their neighbors got the year before. However, the last couple of years they are more realistic. ( Not all but most )
Actually 2 of my houses sold in 4 days, one at full price and one just a couple of thousand under. Why ? They told me to price it to sell, after looking at all the comps we went low end of market value.
I do believe the buyers are right now the hardest to satisfy. Have you ever gone to a really nice jewelry store and the jeweler picks out one at a time each piece and shows it to you ? Once I asked them why they did that and they didn't just take out the whole tray. His comment was, " If I show you everything, you will buy nothing, it decreases the value".
Right now the buyers are like that............they have so much to choose from they choose nothing. Their attitudes are " I think it will come down more", "I think mortgage rates will come down more ". One other thing I hear mostly from other realtors presenting offers to me is " This is their first choice, if they can't get it at the price they want they have 2 others picked out and will negotiate those."
Unfortunately I have seen people walk away over very small amounts of money. My daugher had a buyer like that from out of state. He brought 4 houses in and had decided to go one by one until he got the deal he wanted...........20% under asking price with closing costs and prepaids !
We told him no that is not how we were going to do it. We would write on offer, comp the neighborhood, negotiate strongley and if it didn't work out THEN we would go to the next house. Fortunately we were able to get them in their ( her ) favorite house.
QUESTION:
What is happening in your area? What are you sellers doing? How are the buyers acting?

I'd really like to hear from everyone !